The Fed holds firm, Micron crushes earnings and still gets punished, and the Iran war just hit Qatar’s gas supply.

Happy Friday. Here’s an observation about this week: oil spiked toward $100, gold crashed 6%, and a company that beat earnings estimates by 40% got sold off. If that doesn’t capture the mood, nothing does.

S&P 500 closed at 6,606 (-0.3%), Nasdaq 22,090 (-0.3%), Dow 46,021 (-204 pts). WTI crude near $97, Brent $106. Gold cratered to $4,570. Bitcoin slipped to $69,700. VIX touched 26.8 before settling at 24.9.

The Rundown

WAR/OIL › Iran struck Qatar’s LNG production facilities overnight, wiping out roughly 17% of the country’s output and prompting evacuation warnings across Gulf energy sites. Saudi Arabia and the UAE are now on alert. WTI crude touched $99 intraday before pulling back to roughly $97. Brent traded above $106. Israeli PM Netanyahu signaled late in the session that the war may end sooner than expected, which helped stocks claw back from session lows. But with Hormuz traffic still down an estimated 70%, the supply picture isn’t fixed by optimism alone.

FED › The Fed held rates at 3.50-3.75% yesterday and projected just one more cut for the rest of 2026. Powell was blunt about the Middle East: higher energy prices will push up inflation, and that could delay any easing. February PPI already came in hot before the war’s full effects hit. The market heard “higher for longer” and traded accordingly. Two consecutive losing days for all three major averages, with the S&P now sitting below its 200-day moving average for the first time since last spring.

EARNINGS › Micron (MU) reported a quarter that would’ve been a celebration in any other tape. EPS of $12.20 crushed the $8.66 estimate. Revenue of $23.86 billion beat by $4 billion. The company guided even higher for Q3. Stock dropped 5.6%. Meanwhile, Accenture (ACN) missed EPS by 24% and rallied 4.1%. In this market, positioning matters more than the print. Guidance and forward visibility are the only things getting rewarded.

GOLD › Here’s the one that made me do a double take. Gold, the classic war hedge, fell 6% to $4,570. Silver dropped 12.5%. With a shooting war in the Middle East and oil ripping, you’d expect precious metals to catch a bid. Instead, the dollar surged back above 100 on the DXY, triggering margin calls and forced liquidation across commodities. This is a dollar-strength story, not a “gold is broken” story, but it’s still jarring.

AI/DEFENSE › Nvidia’s GTC conference delivered all week. Jensen Huang committed to spending 50% of Nvidia’s free cash flow on buybacks and dividends, a major capital return shift. Separately, Anduril landed a $20 billion Army contract for software, hardware, and autonomous systems. Palantir published details on Maven Smart System, its SaaS product rolling out across the U.S. military. The defense-meets-AI trade keeps getting real money behind it.

The Play

The stagflation tape is here. Now what?

The setup is ugly and getting uglier. Oil near $100 with no resolution in sight. A Fed that just told you it’s in no rush to cut. PPI already hot before energy costs fed through. And a labor market (jobless claims at 205K, Philly Fed manufacturing at 18.1) that’s still too tight for the Fed to blink.

This is the 1970s comparison everyone’s been dreading, and the market is starting to price it.

What’s actually working. Energy. That’s basically it. The Energy Select Sector SPDR (XLE) broke out of a two-decade base earlier this year and hasn’t looked back. It’s the only S&P 500 sector that’s held up in March. Liberty Energy (LBRT) is up over 70% in 2026. But energy isn’t large enough to carry the whole index, which is why the S&P keeps bleeding even as oil stocks rip.

What’s getting crushed. Growth, tech, anything with a long-duration cash flow profile. Micron reported one of the best semiconductor quarters in recent memory and still lost 5.6%. That tells you this tape doesn’t care about backwards-looking beats. It cares about where rates are going and whether margins survive $100 oil.

The options flow confirms it. Institutions were buying short-dated downside puts in size today. QQQ $630 puts saw roughly $148 million in premium. Tesla $440 puts drew $118 million. That’s not dip-buying. That’s hedging.

Here’s what you can actually do. Check your energy weight. If you’re running a standard 60/40 or all-growth portfolio, you’re probably underexposed to the only sector that works in a stagflation tape. You don’t need to go all-in on oil stocks, but having zero energy exposure right now is a bet that this resolves quickly. The Strait of Hormuz would like a word. Second, don’t chase earnings beats in this environment. Wait for the reaction, not the report. MU will probably be a great buy at some point, but the tape needs to stop punishing winners first.

Thanks for reading! Catch you in the next one! For more updates throughout the week, follow @WOLF_Financial on X.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.